Sunk Cost

What is a Sunk Cost? A sunk cost is a cost which a business has already incurred and which cannot be recovered in the

Last modified March 23rd, 2016 by Michael Brown
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Capacity Cushion

The capacity cushion is the amount of spare capacity a business has expressed as a percentage of the total capacity. The capacity can refer

Last modified May 30th, 2018 by Michael Brown
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Checking Account

What is a Checking Account? A checking account is an account opened by a business with a bank to enable it to deposit and

Last modified March 23rd, 2016 by Michael Brown
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Supplies on Hand

What are Supplies on Hand? All businesses use small consumable items such as paper, pens, paperclips, light bulbs, hand towels etc. Normally a small

Last modified May 30th, 2018 by Michael Brown
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Suspense Account

What is a Suspense Account? The suspense account in accounting is a general ledger account used to make temporary unclassified transaction postings until the

Last modified May 30th, 2018 by Michael Brown
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Long Term Liabilities

What are Long Term Liabilities? The accounting long term liabilities definition is any liabilities which are not current liabilities. Long term liabilities are those

Last modified March 23rd, 2016 by Michael Brown
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Current Liabilities

A liability is an obligation to pay a third party incurred by a business as part of its trading operations. For example, when a

Last modified April 20th, 2015 by Michael Brown
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Dividend Payout Ratio

The balance sheet shows a financial snapshot of the business at a specific point in time, usually at the end of an accounting period.

Last modified December 20th, 2017 by Michael Brown
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Deferred Tax

The balance sheet shows a financial snapshot of the business at a specific point in time, usually at the end of an accounting period.

Last modified July 10th, 2018 by Michael Brown
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Time and a Half

Time and a half is a term used in relation to the payment of employees by a business. An employee has a normal hourly

Last modified March 23rd, 2016 by Michael Brown
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Utilities Expense

What is a Utilities Expense A business utilities expense is a cost a business pays for using the infrastructure provided by public utilities companies,

Last modified May 30th, 2018 by Michael Brown
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Absorption Costing

Absorption costing is a method of tracing both fixed and variable costs of production to a product. In contrast, the alternative is referred to

Last modified July 20th, 2015 by Michael Brown
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